The impact of special economic zones on economic growth in South Africa.
Masete, Tshekiso Rose
Masete, Tshekiso Rose
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Abstract
Special Economic Zones (SEZs) are one of the main economic tools to enhance a country's economic growth. South Africa has adopted SEZs as a policy intervention to stimulate economic advancement. The performance and the contribution of the SEZs in the South African context was well captured. As a result, the key objective of this study was to assess the impact of SEZs on economic growth in South Africa. This study used a qualitative research method which applied content analysis. The study collected secondary data within the jurisdiction of the Eastern Cape and Gauteng provinces. In addition, data were retrieved from the databases of Statistics South Africa and the Department of Trade, Industry and Competition. It was found that the SEZs had positively affected economic growth owing to their contribution to employment opportunities, attracting foreign direct investment (FDI), technology transfer, innovation and exports. For instance, during the financial year 2021/22 Coega generated R235 million in revenue, R20 million in investment value, 9 540 construction jobs, 9 659 cumulative operational jobs and 3 296 people trained; the annual target for GDP was 0.88 per cent. Meanwhile, TASEZ generated revenue of R2.5 billion, with R16 billion in investment value and 8 647 cumulative jobs; it contributed 6.4% to GDP. Nonetheless, the performance of the SEZs has been fluctuating due to location, government funding, investors and political involvement. Thus, this study recommends that the SEZs be near public amenities to have a meaningful impact on local economies. Moreover, a prerequisite for SEZ development and success in South Africa is public-private partnership (PPP). This partnership can improve the quality of the SEZs and enhance economic growth in South Africa. Therefore, policy frameworks must be efficient across various SEZs. In addition, the policy framework for SEZs must be linked with the national development framework to create optimal performance.
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submitted to the Faculty of Economics and Finance for the degree Magister Technologiae: Comparative Local Development in the Faculty of Economics and Finance at the Tshwane University of Technology.
Date
2023-01-02
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Tshwane University of Technology
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Keywords
Special Economic Zones (SEZs, Economic growth, Economic advancement, Department of Trade, Industry and Competition., South Africa